Mexican Peso Slips as Markets Eye Trump’s Trade Policies

The Mexican peso depreciated slightly against the U.S. dollar on Tuesday, in a session where it briefly challenged the psychological barrier of 20 per dollar.

Market participants remained focused on U.S. President Donald Trump’s trade policy announcements.

The exchange rate closed at 20.1235 pesos per dollar, compared to Monday’s official close of 20.1029, according to the Bank of Mexico. This represents a modest loss of 2.06 centavos, or 0.10%.

During the session, the dollar traded in a range between 19.9297 and 20.1452 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.46% to 100.1 points by the close.

Markets React to Mixed Signals from Trump

Trump hinted at possible tariff exemptions on cars and auto parts, after previously boosting market sentiment by temporarily excluding smartphones and other electronics from tariffs on Chinese imports.

However, Federal Register filings revealed the Trump administration is also pursuing investigations into pharmaceutical and semiconductor imports—suggesting more trade measures could be on the horizon.

Peso Rebounds, But Fails to Break 20-Mark

Earlier in the session, the peso strengthened to 19.9300 per dollar—its best level since April 4—before retreating, unable to hold below the 20-mark. At that peak, the currency had gained nearly 2% over three sessions.

Mexican Stocks Close Higher

Mexico’s stock markets closed slightly higher, buoyed by investor focus on U.S. trade developments. The benchmark S&P/BMV IPC index rose 0.48% to 52,643.04 points, while the FTSE BIVA index gained 0.65% to 1,071.42 points.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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